EN FR

Klein's NHL Lottery Idea Should Be Benched

Author: Mitch Gray 2000/04/17
Here we go again. Alberta's Premier Klein has now decided that, as long as it's the Calgary Flames (rather than the Ottawa Senators) staring into the financial abyss, it might be OK to subsidize the NHL after all. And since a direct subsidy is political suicide the Premier has opted to try and pull a hockey sweater over the eyes of taxpayers with a new lottery scheme.

According to the Premier, his proposed NHL lottery would involve no public funds and would have no impact on existing lottery revenues. Horse hockey!

A NHL lottery would, in fact, directly compete for consumer dollars against existing lotteries designed to fund established charities. Lottery dollars that once went to pay for the Developmental Disabilities Resource Centre in Calgary or the Inner-City Children and Community Project Society in Edmonton would be re-directed to the seven figure salaries of twenty-two year olds on skates. A NHL lottery would simply transfer wealth from the poor to the rich and from the public purse to private enterprise.

And what about private enterprise There are those that would argue that lotteries should be privatized. Why should charities (and only "government approved" ones at that) be the sole recipients of lottery proceeds Why are private businesses, like the Oilers and Flames, prohibited from operating their own betting games

Well, for starters Albertans have told their government in no uncertain terms "that all gaming and lottery profits collected by the province be directed to supporting charitable or non-profit initiatives." This guiding principle came out of the 1998 Lotteries and Gaming Summit and presumably reflects the view of a majority in the province. The people have spoken.

Even if one rejects the public's predilection for state-run lotteries, it remains impossible for any true conservative to accept Mr. Klein's new plan. The Premier is not talking about introducing a competitive lottery market. He is merely singling out one industry for special treatment. Under the Klein scenario the only businesses that would be allowed to profit from lotteries would be professional hockey teams.

And what are the criteria for admittance into the business lottery club Why, you have to be on the verge of self-inflicted financial ruin of course! Ralph appears set to return to the Getty years of bailing out failing businesses for some indefinable and unproven greater economic good.

NHL teams are, of course, largely, if not wholly responsible for their own plight. At the heart of the problem are sky high salaries. In 1991, the average player salary in the NHL was $271,000 (US). By 1999, this figure had skyrocketed to $1.3 million (US). This represents a 481% increase in labour costs over nine years. But costs are only half of the equation - sales are also slow. The Calgary Flames, for example, have seen a dramatic drop in season ticket sales over the past few years. These businesses cannot attract consumers to purchase their product. A new NHL lottery will not sustain franchises that can't manage their own affairs and perpetually engage in poor business practices.

So what on earth is the point of an Alberta-only NHL lottery Klein's proposal would do nothing to generate extra income for the government, nor would it improve the lot of existing charities, nor would it create a level playing field for all businesses, nor would it save the Oilers and Flames from themselves.

It's time for the provincial government to throw in the towel in this tiring debate. When it comes to the list of public policy priorities, the complaints of NHL owners and players don't even make the cut.

A Note for our Readers:

Is Canada Off Track?

Canada has problems. You see them at gas station. You see them at the grocery store. You see them on your taxes.

Is anyone listening to you to find out where you think Canada’s off track and what you think we could do to make things better?

You can tell us what you think by filling out the survey

Join now to get the Taxpayer newsletter

Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

Join now to get the Taxpayer newsletter

Hey, it’s Franco.

Did you know that you can get the inside scoop right from my notebook each week? I’ll share hilarious and infuriating stories the media usually misses with you every week so you can hold politicians accountable.

You can sign up for the Taxpayer Update Newsletter now

Looks good!
Please enter a valid email address

We take data security and privacy seriously. Your information will be kept safe.

<